Robert Miranda, executive director of Esperanza Unida, was charged Friday with obstructing an officer for lying to an investigator about a payment of $5,000 that was to be used for the restoration of the agency's Mural of Peace painted on the side of the 611 W. National Ave. building.

The charge is a Class A misdemeanor. If convicted, the charge carries a fine of up to $10,000 or imprisonment of not more than nine months, or both.

According to the criminal complaint, investigators determined that Miranda "did not put any of the $5,000 grant funding into his own pocket," but that Miranda "lied to cover up his scheme to trick the City of Milwaukee Arts Council into releasing grant funds."

According to the complaint:

The Mural of Peace is in need of repair. In 2011, the nonprofit agency applied for and received a $5,000 matching grant from the City of Milwaukee Arts Council for the restoration of the mural. Artist Reynaldo Hernandez, who originally painted the mural, was to do the restoration.

The grant from the city required Esperanza Unida to document that the organization had received and collected an equal donation from another source before the grant money would be released.

The Pollybill Foundation Inc. donated $5,000 to the project in a check dated Dec. 10, 2012.

On March 4, 2013, Miranda "directed a sham payment of $5,000" to Hernandez. Esperanza Unida issued a check for the $5,000 and Miranda provided the city arts council with a copy of the check.

The purported expenditure caused the city arts council to release $4,500 of its grant money to Esperanza Unida

Subpoenaed records of Educators Credit Union for Esperanza Unida accounts showed a check dated Dec. 10, 2012, from the Pollybill Foundation for $5,000 was deposited into the account.

Miranda signed and issued a check from Esperanza Unida dated Dec. 11, 2012, for $5,000 to Hernandez, the artist. But the check number sequence shows this check was actually issued in March 2013 and backdated.

Hernandez cashed the check on March 4, 2013, at Educators Credit Union, 4000 W. Loomis Road. Miranda then deposited $5,000 cash back into the same account at 12:01 p.m. March 4, 2013, at the same credit union.

Hernandez told investigators Miranda gave him the check on March 4, 2013. He said Miranda followed him to Educators Credit Union and that at Miranda's direction he cashed the check and handed the proceeds to Miranda.

Hernandez then saw Miranda conduct a transaction at the drive-through teller.

When Miranda was interviewed by an investigator and Assistant District Attorney Kurt Kenkley on Nov. 5, 2013, it was explained to Miranda that lying to a law enforcement officer in the course of a criminal investigation constituted the crime of obstructing an officer.

But the complaint states Miranda falsely claimed that Hernandez asked that the check be backdated to the year 2012 for tax reporting purposes and that he was not present at the Educators Credit Union when Hernandez cashed the check.

The complaint also states that Miranda falsely claimed Hernandez did not return the check proceeds on March 4, 2013, and that Hernandez gave the money back about a month later because he was unable to start the work and didn't want to keep the unearned payment.

Educators Credit Union records show in May 2013 Esperanza Unida transferred $5,000 into a segregated account identified as "Mural of Peace." Manny Perez, the general manager of Esperanza Unida, said this account represented the arts council grant funds.

The complaint states that the city later garnisheed the money for unpaid property taxes.

Esperanza Unida owes the city more than $215,000 in back taxes on the 611 W. National Ave. building dating back to 2011.

About Georgia Pabst

Georgia Pabst is a general assignment reporter whose areas of coverage include Milwaukee County government, the Latino community, non-profits and neighborhoods.